Blockchain Terminology for Beginners (Part 1)

Blockchain

Blockchains are distributed ledgers secured by cryptography. It is called blockchain since the data are stored piece by piece like things being put into a block container, and the data are chained up to each other chronologically. The blockchain data are stored across many computers worldwide instead of residing on a single centralised server.

Bitcoin

Bitcoin is the first cryptocurrency facilitated by the blockchain technology. It allows trustless peer-to-peer global financial transactions and record keeping.

Crypto / Coin / Token

Crypto is a general term of Cryptocurrency. And under cryptocurrency, it is categorized into coin and token.

Coin generally refers to any cryptocurrency that has its own separate, standalone blockchain.

Token is cryptocurrency that is built on top of an existing blockchain.

Quick examples: Ethereum(ETH) is a coin while Golem(GNT) is token that is built on Ethereum blockchain.

Altcoin

“Altcoin” is a combination of two words: alternative and coin. Altcoin is referring to alternative cryptocurrency to bitcoin. Any coin that isn’t Bitcoin can be called Altcoin.

Ticker Symbols

Every coin or token has a ticker symbol. It is like the currency code like USD stands for US Dollars. People often refer to coins by their ticker symbol and not their name.

E.g. Ethereum’s ticker symbol: ETH
E.g. I have sent you 100 ETH to your wallet.

Cryptocurrency Wallet

In general, it is a software that allows you to store cryptocurrencies and to make transactions. Different wallets hold different cryptocurrencies while some can hold multiples.

NOTE: Usually your wallet will help you manage your “Keys” and create transactions. But there are also custodial wallets that are controlled by a third party.

Address

It is a cryptographic presentation of your wallet. It acts like an identifier of your wallet just like a bank account number. Sometimes people call cryptocurrency addresses as “wallets”, vice versa.

If you want to take a look and get a hands-on experience on blockchain, there is a Ethereum-based crypto wallet that embedded in a facebook chatbot.

Simply talk to the bot, and you could then receive 5 KLAB tokens to play around. Tokens can be send around to your facebook friends in a snap.

If you wonder how much more could a token be utilized, please check out the other articles I have written. Cheers.